São Paulo – The Brazilian trade balance posted a surplus of USD 46.7 billion in 2019. The figure is 20.5% lower than 2018’s and is the narrowest since 2015. The numbers were made public this Thursday (2) by the Ministry of Economy.
The surplus is the result of exports worth USD 224 billion and imports worth USD 177.3 billion. As per the daily average, foreign sales slowed 7.5% from 2018, and purchases slid 3.3%.
Exports declined across the board, including finished, semi-finished and basic goods. Sales declined particularly in oil platforms, cargo vehicles, passenger cars, iron and steel flat laminates, auto pieces, plastic polymers, raw soy oil, leather, iron and steel semi-finished goods, raw sugar, pulp, slotted and sawn timber, soy beans, copper ore, soy bran, and raw oil.
Agência Brasil reported that the primary factors for the slowdown, according to the Ministry’s Foreign Trade secretary Lucas Ferraz, were the deepening crisis in Argentina, which is an important purchaser of Brazilian finished goods; and the swine fever in China, which reduced the demand of Brazilian soy, one of the main exports from Brazil.
Sales to the Middle East, however, were up by 9.1% last year from the previous year, to USD 10.8 billion. Higher increases were posted in sales of iron ore, semi-finished gold, poultry, cast iron tubes, copper bars, profiles, wires etc., living cattle, soybeans, and aircraft motor parts and turbines.
Imports
On the other hand, a decline was seen in the imports of capital goods, consumer goods, and fuel and lubricants, while a small increase were posted in the purchase of intermediate goods
The imports to the Middle East were down 3% due to a slowdown in the purchases of raw oil, aviation kerosene, plastic polymers, urea, liquefied natural gas, iron and steel semi-finished goods, brimstone, acyclic alcohol and derivatives, and potassium chloride.
Translated by Guilherme Miranda